Which of the following statements is true?
A. The speculative demand for money at possible interest rates gives the demand for money curve its upward slope.
B. There is an inverse relationship between the quantity of money demanded and the interest rate.
C. According to the quantity theory of money, any change in the money supply will have no effect on the price level.
D. The transactions demand for money is used as an insurance agent against unexpected needs.
Answer: B
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The Gini ratio is a measure of
A) income inequality. B) wealth distribution. C) income distribution. D) income as compared to wealth.
Javier wants to start a microbrewery business and is thinking of setting it up as a sole proprietorship
What are the advantages and disadvantages he will face by setting up the business as a sole proprietorship as opposed to a partnership or a corporation?
Brook is spending all of her income consuming products X and Y. If MUx/Px=1 and MUy/Py=6, what should Brooke do to maximize her satisfaction?
A. Buy more X and more Y B. Buy more X and less Y C. Buy less X and less Y D. Buy less X and more Y E. Make no changes
The agricultural nation of Luckidom is attempting to answer the three fundamental economic questions. Develop the three questions as they relate to this nation.
A. 1. Should we produce more wheat and fewer soybeans? 2. Should we farm with equipment or by hand? 3. Do the farmers or the governors receive a higher salary? B. 1. Should we farm with equipment or by hand? 2. Do the farmers or the governors receive a higher salary? 3. Should we grow near the riverbed or by the coast? C. 1. Do the farmers or the governors receive a higher salary? 2. Should we grow near the riverbed or by the coast? 3. Should we produce more wheat and fewer soybeans? D. 1. Should we grow near the riverbed or by the coast? 2. Should we produce more wheat and fewer soybeans? 3. Should we farm with equipment or by hand?